Lannett Company, Inc. (NYSE: LCI) today announced that it has entered into distribution and contract manufacturing services agreements with Sunshine Lake LLC, the U.S. subsidiary of the HEC Pharm Group (HEC) of Shenzhen, Guangdong Province, China.
Under terms of the distribution agreement, Lannett will be the exclusive distributor in the U.S. for Sunshine Lake’s Zidovudine generic pharmaceutical product in finished dosage form. Zidovudine Tablets 300 mg was launched by Lannett last week. According to IMS, full year 2013 total sales of Zidovudine Tablets 300 mg, the generic equivalent of Retrovir
, a registered trademark of GlaxoSmithKline, at Average Wholesale Price (AWP) were approximately $4.5 million. The intention of the parties is to add additional products from time to time, and may include a number of ANDAs currently pending at FDA, as well as future filings.
The companies have also agreed to co-develop, over the next three years, 25 dosage formulations, with Sunshine Lake providing management services and expertise to scale up and commercialize products at Lannett’s Philadelphia, PA facilities. Sunshine Lake offered to provide contract manufacturing services and serve as the distributor in China for certain Lannett products. In addition, as an active pharmaceutical ingredient (API) manufacturer, Sunshine Lake has also offered their experience, staff and expertise to help accelerate API development at Lannett’s Cody Laboratories facility.
“Lannett is a leading U.S. developer and manufacturer of generic pharmaceuticals, with a growing pain management business. We believe our goals, objectives and areas of expertise are aligned and complement those of Lannett. This agreement creates new revenue streams for both companies’ future growth,” said Jeffrey Weiss, President of Sunshine Lake.
“This collaboration provides Lannett the perfect opportunity to add products to its portfolio, lower production costs, expand its pain management franchise and, possibly, enter the China market,” said Arthur Bedrosian, president and chief executive officer of Lannett. “With a premier sales force in China and expertise in formulating APIs, we believe HEC is the perfect strategic partner to help significantly grow our business.”